The Reserve Bank of India (RBI) increased the repo rate by 35 basis points in the December policy, which was in line with the forecasts. After the Reserve Bank’s hike, the policy repo rate has now reached 6.25 per cent, which is the highest level since August 2018.
With this, the repo rate has increased by a total of 225 basis points so far in FY2023. After this increase in the repo rate, it is possible that banks will increase the interest rates on various types of loans and deposit products.
After reaching a five-month high of 7.41 per cent in September, India’s retail price inflation eased to 6.77 per cent in October 2022, prompting the RBI to raise the repo rate to 5.90 per cent in the September policy. Along with this, the RBI has also retained its inflation forecast for the current financial year at 6.7.
Suryoday Small Finance Bank
The interest rate on fixed deposits in Suryoday Small Finance Bank has increased by 0.50 percent to 2.26 percent. New interest rates are applicable in this bank from 6th December. Suryoday Small Finance Bank is offering senior citizens an interest rate of up to 9.26 per cent on their FDs as compared to the general public. At the same time, the bank is giving only a maximum of 9.01 percent interest to the general public on FDs of less than Rs 2 crore.
Apart from this, the bank has also launched an FD of 5-years with a tenor of 15 days. Under this fixed deposit, the bank is providing interest at the rate of 9.01 per cent to non-senior citizens and 9.26 per cent to senior citizens.
Unity Small Finance Bank
Apart from this, the deposit interest rate of Unity Small Finance Bank has also been changed from November 21, 2022. The bank is offering a maximum interest rate of 8.50 per cent for general citizens and 9 per cent for senior citizens for two specific fixed deposits of 181 and 501 days.
